Footer links for seo reasons
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Sounds like some questionable SEO, but I'm not surprised it's getting them by. I haven't seen a big focus on penalizing this type of activity. In fact, I used similar tactics at my previous position (against my will) to help my company rank for a few cities we didn't have offices in, but wanted to target. I didn't go as far as creating standalone pages for them, but I did target the keywords pretty aggressively.
The footer links probably aren't helping those pages rank very well as footer links have been devalued recently, but I wouldn't be surprised if they have a good amount of backlinking to them. They're probably also taking advantage of a very good amount of on-page optimization.
You've also got to keep in mind since they're using exact matching in their URL to rank for those keywords, they're probably not doing too well trying to rank for other keywords for those pages.
That said, sadly this kind of ranking activity will probably persist for another couple of years. Google seems to have bigger fish to fry right now.
A better suggestion would to be to try to optimize for your cities using other methods such as blog posts, unique pages, listing those cities in on-page areas of your site, and trying to get link partners to link to you in those areas.
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I expect they've probably got a tonne of backlinks too if they're doing so well, it certainly won't be the footer links that are doing it. Is there much competition for them in those areas? I found out a long time ago that whilst we're based in Ringwood and service clients from Southampton and Bournemouth a lot, the keywords SEO Southampton and SEO Bournemouth were pretty much useless. Instead, searchers were more likely to use SEO Company Southampton, or SEO Services Bournemouth, and other modifiers/qualifiers. Then we knocked that on the head too, and just went for SEO Company, with no location suffix. That's getting us far more leads. Being online, why restrict yourself to your area or even your country

Anyway, my point is, I'm guessing that the competition for those keywords they're ranking for is lower than you think as most SEO's wouldn't bother with just SEO <location>as it's hardly worth it. That might explain their rankings... along with the fact they've probably got some good domain authority, etc... from a lot of backlinks.</location>
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We have www.teconsite.com with good rank, our
domain authority is 36
page autority 44
linking root domains 78
total links 6155
our competitor for the page www.mycompetitor.com/web-design-city
has the following data
domain authority 37
page authority 35
root domains 2
total links 74
We are interested in web development and nor specially interested in seo. So, for web development we are specially interested in our location, cause most of clients want to talk to you personally.
I have gotten the data from the open site explorer and I don't understand, cause if the data is ok, the domain authority (1 point difference) will be so power that could go over the other parameters.
What do you think about that data?
Thanks
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Well we know that the anchor text of the internal link is the keyword, then there could also be anchor text of that same keyword from some of the backlinks, plus the URL containing the city name. I'd say it was pretty much as simple as that

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The most complete and accurate answers can be offered by offering complete information.
If you can provide a keyword phrase you wish to rank for, a link to the page on your site which is being outranked in SERPs, along with the URL of your competitors page, we can take a look and offer an objective analysis.
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Ok,
Here is the keyword "diseño web vigo" in www.google.es
Today it seems like we are in the number one. But it would be something new, we usually rank 3 or 4 for that keyword
Thanks